updated 08:45 pm EST, Wed December 11, 2013

Discount applies to 16GB models only, requires two-year contract

In a move likely designed to compete with T-Mobile's recent discounting of iPhone down payments, US retail giant Walmart will cut its up-front price for the 16GB models of the iPhone 5s and 5c by $72 when purchased with a two-year contract from either AT&T or Verizon. The promotion, which begins Friday December 13, coincides with the launch of Walmart's contract-free iPhone sales with service through Straight Talk or NET10 Wireless.

The sale price brings the up-front cost of a 16GB iPhone 5s down to $127, and the cost of an iPhone 5c to just $27. Also available from Walmart is a $50 gift card with the purchase of a 16GB first-generation iPad mini, and discounts on iTunes gift cards ($5 off a $30 card). Other Apple accessories are also being discounted, reports AppleInsider.

The news comes after T-Mobile announced it would suspend down payments entirely on 16GB models of the iPhone 5s and 5c, saving up to $149 in up-front costs. Walmart's promotion starts at 8AM local time at its stores, and runs through December 24 or while supplies last.